India-China Bilateral Trade Contracts In October, As Slowdown Impact Exports

The bilateral trade relations between India and China witnessed a slight decline in October. The official data from the commerce department revealed that trade between the two countries touched $10.7 billion during the month, slipping 0.46 per cent due to a slowdown in the Chinese economy.This contraction in trade was driven by exports as outbound shipments to China plunged 9.5 per cent to touch $1.15 billion. Meanwhile, the overall exports of India recovered in the month under review and grew at a double digit pace of 17 per cent, reported Business Standard.Among exports, India saw a positive surge in shipments to nine out of its top 10 export desitnations, apart from China. Amongst these countries, India’s exports to the US jumped 11.5 per cent, while shipments to UAE surged 43.3 per cent. Exports to The Netherlands and the UK grew 14.6 per cent and 42.1 per cent respectively. Shipments to Singapore, Saudi Arabia, Bangladesh, Germany, and Australia climbed 197 per cent, 0.5 per cent, 2.5 per cent, 25.7 per cent, and 60.4 per cent respectively. The data showed that the recent months’ trends highlighted that outbound shipments to China slowed down as demand for goods like iron ore reduced. This indictaed a broader weakening in the neighbouring country’s economy. Notably, China is the second largest trade partner for India and its largest source of imports.Also Read : Siemens Layoffs: Tech Firm Likely To Fire 5,000 Employees Amid Ongoing ChallengesThe exports to China have been on a decline over the last few months. In June, China stood as the fifth-largest export market for India, while in October, the country slipped to sixth position in the ranking. The imports from China also grew at a muted pace at 0.74 per cent to touch $9.6 billion in October, but the country managed to remain the largest imports source for India.Amongst its top 10 importing nations, shipments from China, Russia, the US, the UAE, Saudi Arabia, and Iraq increased during October, wherein, imports from UAE grew at the fastest pace.